Property Investment Strategy

In last week’s article, we explored the concept of liquidity within the property market – why it’s important to consider, and what the risks are for those who don’t. This week, we’re getting a bit more practical. How should you account for liquidity when purchasing an investment property? Understanding liquidity and its impact is crucial for making informed investment decisions and optimizing returns, especially in the inherently slow-moving property market.

Amidst the affordability crisis, ‘rentvesting’ is reshaping how young Australians and first-time investors approach the property market. Traditionally, the homeownership dream was simple – buy a home, and live in it. However, as property prices soar, a growing number of people are adopting the rentvesting strategy. This unique approach allows individuals to rent where they want to live – often in areas that suit their lifestyle but may be too expensive to buy – while owning investment properties in more affordable markets.

In today's competitive property market, house hacking is emerging as a savvy strategy for first-time investors and young Australians. This innovative approach can significantly reduce living expenses while building equity and generating rental income. Traditionally, the path to homeownership involved saving up for a deposit, purchasing a property, and gradually paying off the mortgage while living in the home. House hacking, however, turns this model on its head, offering a more flexible and financially efficient way to enter the property market.